Amendment of Part 2 of Schedule 265

1

Amend paragraph 4 (contracts excluded by virtue of their underlying subject matter) 3 as follows.

2

In sub-paragraph (2)(b)(i) for the words from “other than shares” onwards substitute insert “other than shares excluded by sub-paragraph (2ZA); or”.

3

In sub-paragraph (2)(b)(ii) at the end add “other than a scheme to which paragraph 4 of Schedule 10 to the Finance Act 1996 applies”.

4

After sub-paragraph (2) insert—

2ZA

The shares excluded by this sub-paragraph are—

a

shares in relation to which section 91A or 91B of the Finance Act 19964 has effect;

b

shares in an open-ended investment company to which paragraph 4 of Schedule 10 to the Finance Act 19965 applies.

5

In sub-paragraph (2B)(b)—

a

after “the contract and” insert “—(i)”; and

b

after “unit trust scheme,” insert—

or

ii

any share capital of the company,

6

In sub-paragraph (2D)(a)(ii) after “an asset” insert “or liability”.